Section 26-51-431 - Items not deductible in net income computation(a) In computing net income, no deduction shall in any case be allowed in respect of: (1) Personal, living, or family expenses, except that any payments of alimony made by an individual pursuant to a court order shall be deductible;(2) Any amount paid for new buildings or for permanent improvements or betterments made to increase the value of any property or estate;(3) Any amount expended in restoring property for which an allowance is to be made;(4) Premiums paid on life insurance policies; and(5) Shrinkage in value of property.(b) Title 26 U.S.C. § 265(a), as in effect on January 1, 1993, regarding expenses and interest relating to tax-exempt income, is hereby adopted for the purpose of computing Arkansas individual income tax liability.(c) For the purpose of computing Arkansas corporation income tax liability, no deduction shall be allowed for: (1) Expenses otherwise allowable as deductions which are allocable to income other than interest, whether or not any amount of income is received or accrued, wholly exempt from the taxes authorized by Arkansas law;(2) Interest on indebtedness incurred or continued to purchase or carry obligations the interest on which is wholly exempt from the taxes imposed by Arkansas law; and(3) Expenses otherwise allowable as deductions which are allocable to nonbusiness income.Acts 1929, No. 118, Art. 3, § 14; Pope's Dig., § 14037; Acts 1983, No. 379, § 5; A.S.A. 1947, § 84-2019; Acts 1993, No. 785, § 17.